Mozo Rate Chasers Roundup – May 2015

Mozo Rate Chasers Roundup – May 2015

This is a round-up of rates in May and some may have changed since the time of writing. To check on today’s rates click on the highlighted product.

Home Loans:

Most lenders in the Mozo database have now cut variable rates following the RBA’s decision to reduce the cash rate by 25bp to 2.00% at its May meeting. Unlike the February RBA rate cut, in May we saw a large group of lenders pass on only 20 basis points or so, led by 3 of the 4 majors. A group of 27 lenders did pass on the full cut, 6 passed on 21 or 22bp, 38 cut rates by 20bp and 3 lenders passed on less than that.

Suncorp introduced a special rate of 4.16% on its Home Package Plus, available for all loans over $150,000 with an LVR of less than 80%. Borrowers will also have the $375 annual package fee waived.

3.98% is the lowest variable rate available to most borrowers, from both Homestar (up to 95% LVR) and loans.com.au (up to 80% LVR). For those with an LVR of less than 50% Mortgage House has an even lower rate of 3.94%.

Fixed rates were mixed with some lenders making cuts while others made increases.

The best fixed rates for each term are:

  • 1 year: Greater Building Society at 3.49%
  • 2 years: Newcastle Permanent at 3.89%
  • 3 years: HSBC at 3.95%
  • 4 and 5 years: Newcastle Permanent at 4.29%

Check out Mozo’s Home Loan Compare tool that will help you find the lowest rates for your loan amount and property value.

Credit Cards:

Credit cards largely missed out on any rate reductions in May, but there are still plenty of long term balance transfer options available.

ANZ is waiving the annual fee on its range of rewards cards for the first year. The 50,000 bonus points on its rewards cards is still available, however customers must now spend $3,000 on purchases in the first 3 months. Low Rate, Low Rate Platinum, Platinum and First all continue with a balance transfer rate of 0% for 16 months.

Commonwealth added 20,000 bonus points for their Awards Credit Card and $100 cash back on Low Rate, both to promote the lock, block or limit functions. They continue with their 5.99% for 5 months balance transfer rate.

NAB increased annual fees by $30 to $95 on its flybuys Rewards, Qantas Rewards, and Velocity Rewards Cards. Rewards cards also have a balance transfer rate of 0% for 15 months, combined with various levels of bonus points. Low Fee and Low Rate cards have a balance transfer rate of 4.99% for 6 months with the Low Rate card also having a 0% for 12 months purchase rate.

Westpac cards remain unchanged from last month, with an online only balance transfer rate of 0% for 18 months on its Low Rate card, 0% for 6 months balance transfer on its 55 Day and 55 Day Platinum cards, and 0% for 16 months balance transfer on its Altitude range which also has a 0% for 3 months purchase rate.

Community First’s McGrath Pink Visa has the lowest purchase rate in the market at 8.99%, and comes with 4.99% for 6 months on balance transfers and purchases.

The longest 0% introductory purchase rate at 12 months is available on NAB’s Low Rate Card and Virgin Money’s Velocity Flyer Card.

Citibank’s 0% for 24 months balance transfer rate on its Platinum Card is still the longest. Citibank’s Prestige card still has the largest swag of bonus points, with 70,000 Qantas Frequent Flyer or Citibank Rewards points if you spend in the first 3 months.

See all the great credit card offers along with the important fees and rates here to find a deal that suits you.

Personal Loans:

Some sharpening of personal loan rates during the month with a number of lenders passing on some or all of the RBA’s cash rate cut. Suncorp even cut its Car Loan rate by one full percent, from 7.99% to 6.99%.

Bank of Queensland took 20bp off the variable rates on both its Car Loan (now 11.00%) and Unsecured Personal Loan (now 12.95%).

bankmecu cut 10bp off the variable rates on its goGreen car loan (now 7.89% for a greenhouse rating of 7+, or 8.39% for a greenhouse rating of less than 7), and Lifestyle Personal Loan (now 12.39%).

Community First reduced both the fixed and variable rates on its Personal Loan from 13.74% to 13.49%.

Gateway Credit Union cut rates on its range of loans by 15bp, now starting at 7.29% for its variable rate New Car Loan.

Greater Building Society cut its fixed Unsecured Personal Loan rate from 12.95% to 11.95%, and cut its fixed Secured Personal Loan rate by 46bp to 7.49%.

IMB cut fixed rates with its New Car Loan down 30bp to 6.69% and its Unsecured Personal Loan down 54bp to 11.95%.

Qantas Credit Union cut variable rates by 25bp with its Special Secured Loan now at 7.09% and its Unsecured Personal Loan at 11.64%.

Queensland Country Credit Union cut 25bp off some of its fixed rates taking its Eco Smart car Loan (with 20% deposit) to 7.95%, its standard Eco Smart Car Loan to 9.50%, and its New Car Loan (with 20% deposit) to 8.95%. Other rates were unchanged.

RACQ and RACV cut their New Car Loan rates by 29bp to 6.70%.

Newcastle Permanent and loans.com.au continue to have the best fixed secured loan rate at 6.49%, unchanged again this month.

The lowest general-purpose unsecured rates are 7.99% fixed from Newcastle Permanent and 9.29% variable from BCU.  Peer-to-peer lender Rate Setter advertises a lower indicative rate of 7.10% fixed.

Find the best deals you can get right now with Mozo’s Personal Loans comparison.

Term Deposits:

Better news for depositors this month with some providers increasing select rates.

ANZ’s best rate for less than 1 year is 2.40% for 6 months. Commonwealth announced an increased 8 month term deposit rate of 3.05%. That’s still their best rate for terms under 1 year. NAB introduced a 10 month rate – also at 3.05%.

Westpac announced an increased 9 month term deposit rate – yet another 3.05%. Depositors must call or visit a branch in order to get this rate.

ME Bank added 50bp to its 6 month rate, taking it to 3.50% and the best rate available for any term less than 1 year.

Newcastle Permanent increased their 3 month rate by 30bp to 3.10%, the best for that term and the second best rate for any term less than 1 year. They also added 40bp to their 7 and 9 month rates, taking both to 3.00% and the best for those terms.

Bankwest lifted both its 4 month and 10 month rates by 75bp to 3.00%. The 4 month rate is the best for that term, and the 10 month rate is second best.

Find the best rates for a term that suits you using Mozo’s Term Deposit Compare tool.

At Call Deposits:

While many lenders didn’t pass on the full RBA cut to home loans, most made cuts to savings account base rates. We recorded 44 different institutions cutting base savings rates by 25bp. The only two rate increases in the month were from major banks increasing one headline rate while reducing another.

ANZ increased the introductory bonus rate on its Online Savings Account by 5bp to 3.10%, at the same time reducing the account’s ongoing base rate by 25bp to 2.60%. The bank also cut the ongoing bonus rate on its Progress Saver by 25bp to 2.71%.

Commonwealth took a slightly different approach adding 5bp to the ongoing bonus rate on its GoalSaver account, while reducing both the introductory and base rates on its NetBank Saver by 25bp to 2.75% and 2.00% respectively.

NAB took 25bp off the introductory rate on its iSaver account, now 2.70%, 10bp off the ongoing bonus rate on its Reward Saver account, now 2.95%, and 25bp off the base rates on both account, now 2.00% on iSaver and 0.50% on Reward Saver.

Westpac cut its eSaver introductory and base rates by 25bp to 2.81% and 2.00% respectively. Rates on its Reward Saver are so far unchanged, with the ongoing bonus rate at 2.95% and base rate at 0.01%.

The best ongoing bonus rate is RAMS’ Saver at 3.60%, next is ING Direct’s Savings Maximiser on 3.50% and third is UBank’s USaver with Ultra at 3.37%.

Citibank’s Online Saver now has the best introductory rate at 3.40%.

The best ongoing rate is now Newcastle Permanent Building Society’s Online Savings Account at 2.85%, but you must have an everyday account or home loan to qualify. The best rates without any strings are Rural Bank’s 2.75% for over $5,000 and AMP’s 2.60%.

Find the best at call savings rates including any hoops that must be jumped through to qualify for them using Mozo’s Savings Account Compare tool.

Mozo Rate Chasers Roundup – May 2015 was last modified: June 29, 2015 by Peter Marshall

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